The total of the rescheduling is USD 891 million which includes the operations carried out with the China Development Bank and the Eximbank.
The Ecuadorian Government once again renegotiated the debt with financial institutions in China.
On August 5, it managed to prevent payments from being made to the China Development Bank (CDB) for the next 12 months for USD 417 million. And this September 16, the Ministry of Economy announced that an agreement was reached with Eximbank, which will allow financial relief for USD 474 million during 2020 and 2021.
According to Economía, the rescheduling of these two operations amounts to USD 891 million.
In a statement, Minister Richard Martínez pointed out that
“this is another step within the virtuous circle of trust that the international community has placed on Ecuador and, in this particular case, on bilateral partners such as China.”
The Secretary of State indicated that with these actions a debt sustainability mechanism is created and contemplates the arrival of more resources to the country to give relief to the Ecuadorian economy.
The agreement allows rescheduling the principal payments corresponding to the four largest loans in the loan portfolio with Eximbank, which represent 84.2% of the total debt, and which financed the projects Coca Codo Sinclair, Paute Sopladora, Minas-San Francisco and 500kw Transmission Line.
Finance warned that it planned to pay the amortizations of 2020 and 2021, but with the agreements reached, those cancellations would be reduced to zero for that period.
Repayments for the remainder of this year were planned for USD 158 million and USD 316 million for 2021 for the four loans to Eximbank.
The State Portfolio stated that the non-payment of amortizations added a grace period of 16 months in the capital, without the original conditions being altered.
In this sense, the weighted average rate of these four operations is 6.44%.
Principal payments will resume in March 2022, and will be distributed proportionally over the term of the four loans, that is, between the years 2025 and 2029.
In his Twitter account, President Lenín Moreno affirmed that this decision relieves public finances and attracts more resources.
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